Are My New Windows Tax Deductible?

February 14, 2019

Find out if there's a window tax credit this tax season.

New windows are a valuable home improvement that can pay off in the form of decreased energy bills. But as April rears its ugly head, you may be asking yourself, “Are my new windows tax deductible?” We’ve got your answer + more info for tax time:

Can I write off new windows on my taxes?

Under the previous Non-Business Energy Property Credit, the IRS rewarded homeowners with tax credits if they made energy-efficient improvements to their homes. Unfortunately, those tax deductions expired on December 31, 2017.

Thankfully, energy-efficient windows aren’t the only way you can get tax deductions for home improvements.

How to Save Money Now

Residential Energy Credits—qualifying energy improvements made to your home—are housed under IRS Form 5695. Here’s what you need to know: 

Renewable Energy Tax Credits

These tax credits are for residential geothermal heat pumps, small wind turbines, solar energy systems and fuel cells. They expire on December 31, 2021, so take advantage while you can!

Make sure your qualifying renewable energy installations meet the requirements set by the IRS before you attempt to get a tax credit. These include specifics about the costs covered, which homes qualify, limits and more.

How to Save Money in the Future

Home improvements—like a new roof or insulated attic—can reduce your taxable gain when you sell your house.

This means if you make a profit from selling your house (Yay!), you may owe taxes on that gain if it’s over $250K (for an individual) or $500K (for joint filers). However, that taxable amount is reduced with the cost of improvements you’ve made to the house. Remember to save all of your receipts and records in one place.

Even though there’s no longer a window tax credit for new, energy-efficient windows, they’re still a valuable investment. Think of the energy and money you’ll save! Now that’s a credit that gives year-round.

More ways to improve your home now:

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